Xbox Vs Nintendo

Nintendo’s strategy for pricing of consoles and games was to lock-in the network effects consoles offered by pricing them at- or below- cost and reaping profits by pricing video games at significant margin. Nintendo took these actions because it knew that if consumers used the NES/ Famicom console, they would be a captive audience for its higher-margin video games which were necessarily more perishable from a consumer taste perspective. This affected the value created by

Through the years of all the generations consoles Microsoft’s Xbox and Sony’s PlayStation both prove to be, arguably, number one. The flames of the console war since the release of the latest generation of consoles back in 2013 have been set ablaze by fans and gamers alike. Microsoft had a weak start with the Xbox One and with nonstop updates and quick releases they crushed their competition. What exactly makes Xbox better?

Xbox has many more features than other consoles. In many different ways it can be cheaper than let's say the PS4. The Xbox is very easy to learn about how to use it. Many people use it to just watch movies or Netflix. Many apps are free on Xbox and if some cost money, then they will have a free trial! There are different platforms that you can play Xbox on. Xbox also has many more games you can play right now! Also more are being added every day. There are so many reasons why Xbox is clearly better.

After Sega went out of business with their last console, the Sega Dreamcast, there were only two developers creating consoles which was Nintendo and Sony. Microsoft saw an opportunity to make money and they had already had some experience in the video game industry with their help at Sega.

As sales of Nintendo’s Wii and DS dominate the PlayStation 3 and Xbox 360, and PlayStation Portable, respectively, the pressure continues to mount on Sony and Microsoft to move to the next level in the ongoing console wars. Sales of the Wii in 2008

The age of playing on the video game console was thought to end in recent years, but strong need for console gaming is still in demand. The Sony Playstation 4 has sold over 20 million, while Microsoft and Nintendo have sold half that amount. Sony, Microsoft and Nintendo are projected to earn over $15

To understand high-end game console in 21st century, It is important to consider the similarities and differences between Xbox One and Play Station 4. First, it is important to examine the game market of them. According to Website khaosod.com, they have a same problem about game quantities. Because of the graphic in these console should be high, so the game developments cannot produce a game in short period. They have to use more time to create the game before selling on the game market. However, PS4 have stategy for reducing the problem that is give an opportunity to every one who want to develop the game and selling on their market. The type of this game is called "Indy Game". The next, people should investigate these game console about services of them.

Sony, Microsoft and Nintendo have been competing for a decade with Sony dominating the market throughout most of the years because of their superior technological products. The video games industry faces an entirely new rivalry situation. In 2008, Sony lost its strong position on the market, because of Nintendo’s success with their dynamic Wii over Sony’s high-tech PlayStation 3 and Windows’ Xbox 360. Although the Wii was technologically much less advanced than PS3 and Xbox 360, the Wii's cheaper price, ease of use, innovative motion-sensitive controller, and simple but fun games, made the console a hit all demographics from 9 to 65 years old, male and female. All these factors resulted in Nintendo’s Wii dominating sales and surpassing Sony’s by an impressive ratio of 2:1.

Nintendo a company with many accolades and an history of achievements has constantly made their mark in the gaming industry. Founded by japanese businessman Fusajiro Yamauchi in 1889 known for being a small card trading company. Nintendo grew over the years with the innovation of the new gaming systems like handhelds (Gameboy) and consoles (Magnaox Odyssey) which both were really successful and helped advances gaming the process. But in 1991 Nintendo released the Super Nintendo which helped the design of the controllers; after releasing the Super Nintendo, Nintendo looked into making more advances with the gaming side of the company. By teaming up with Sony, Nintendo established a way of play CD roms on gaming consoles, which is a huge event

Microsoft is trying to establish the Xbox One as the video game console leader in the Video Game Industry. The Xbox One is a third generation video game console for Microsoft. The video game industry continues to have steady growth. However,

Global Video Game Console Industries must try to maintain a sustainable competitive advantage through innovation such as creating an upgraded version of the game every year or increase their on and off line presence to better satisfy their customers. There are many competitors in the Video Game industry that include PlayStation 3, Xbox 360 and Wii. These gaming consoles compete in terms of price, durability and loyalty. With Intensity Rivalry being a major determinant of competitiveness, video game companies work towards dominating the industry as well as gaining the major part of the industry profit pool. (Blackwell, 2002)

The fifth and final force is that of the intensity of rivalry. This is the strongest force in the video game industry. Nintendo was very strategic in targeting an audience that Microsoft and Sony neglected. While Microsoft and Sony focused on the typical gamers, males ages 18-34, Nintendo focused on a broader audience “everyone” when creating their Wii. In the video game industry rivalry Microsoft and Sony are battling for the same market, while Nintendo has much of its audience all to itself. This is why

Nintendo appears to have implemented a market-penetration pricing strategy. The Wii at a cost of $250 is 50% less than the 20-gigabyte PS3 (smaller hard drive machine). At this lower price, it is easier for the product to penetrate the market due to affordability in most segments. This aligns with the assumed company’s aim of maximising market share in the current and new segments. To achieve this, Nintendo ensured that the Wii was less costly to manufacture. Moreover, a higher sales volume may lead to lower unit costs and higher long run profits. Conversely, Sony is believed to have a market-skimming pricing strategy. The company invested $2 billion in technology, so this strategy aims at recovering the maximum amount of revenue to cover the high costs incurred in the early stages of the product life cycle. Additionally, Sony has a strong brand due to the success of their previous machines (PS2 and playstation) and the high price assists in communicating the image of a superior product with quality.

While Microsoft grappled with its growing losses, rival Sony extended its already strong lead. As previous gaming heavyweights like Nintendo and Sega lost ground, Sony was able to grab a 70% share of the videogame console market. Microsoft still holds a smaller than 20% share, according to analysts..

The main obstacle facing a start-up video game console company from entering the industry is saturation of the market from the larger video game console makers or the “big three” Nintendo, Microsoft, and Sony. The big three tend to release new game consoles around the same time frame and compete head to head for sales. During the time frame it is impossible for a new entry to jump into the fray. 2010 was a banner year for video console sales Sony’s PS3 sold 14 million units followed by Microsoft’s Xbox 360 13 million and surprisingly Nintendo’s Wii led the big three selling 17 million units. After the 2010 release of all three consoles sales started to decline for each company. Nintendo took the largest sales loss at 72% in 2013 only 747,000 were sold compared